Business Scenario

Type of Business

Ethan started a tutoring website. After a few months, a publishing company filed a lawsuit

Sole Proprietorship against his company for copyright infringement. Ethan had to shut down his business and lost all his personal assets in the process.

Radford started a business, based in a different state, with his uncle. Due to the Partnership business's underperformance, they had to close the business. Radford, however, ended up losing his house due to a litigation claim.

DDX Co$.$ is a shipping company. Aakash owned $1,000$ shares of DDX stock. He found better opportunities and sold his entire stake in DDX to another investor.

Aakash, Radford, and Jose own an accounting firm in San Francisco. All share in the profits of the firm proportionately and file taxes at an individual level. According to their agreement, none of the owners will be held personally liable for the accounting firm's debt.